Tariffs threaten to price Quebec seafood processor out of U.S. market as companies try to adapt
Various industries in Quebec's regions could see 'immediate financial loss,' manufacturer says
For the first time in decades, Bill Sheehan has to think about looking beyond the United States for new markets for his seafood processing company.
When he first started working with his dad in the 1980s, shipping their products from Quebec's Gaspé Peninsula to the U.S. was just "natural."
"It's always been like that," said Sheehan, the co-owner of E. Gagnon et fils and Pêcheries Marinard.
Prime Minister Justin Trudeau announced Monday that U.S. President Donald Trump will hold off on levying tariffs on Canada for at least 30 days. But with the promised 25 per cent tariffs looming, Sheehan is among many Canadian business owners bracing for the impact.
He says his business will need to be able to find markets elsewhere, possibly in Asia and Europe.
"It's not that easy to find [a] new market two months before the season," said Sheehan.
"We tried before. We do trade shows all over the planet, but [the U.S.] is our partner for a long time and it's for sure easier to do business in the States."
'Canada can't consume all the product'
Employing over 700 people seasonally, Sheehan says his company sells 75 per cent of its products such as lobster, shrimp and crab to the U.S.
He says the U.S. tariffs threaten to completely push his business out of some markets — with cold water shrimp acting as one example.
Both Norway and Iceland are going to be able to sell the same shrimp in the States without a tariff, says Sheehan.
"If you put [a] 25 per cent [increase], there's only so much that the U.S. consumer is going to be able to swallow," he said.
"They're going to kick us right out of the market. That's going to happen for sure."
With renewed calls to buy Canadian amid a forthcoming trade war, Sheehan notes that doesn't solve his problem — considering the hundreds of millions of pounds of product.
"I don't think the size of Canada can consume all the fishing product in Canada," said Sheehan.
"[Even] if everyone in Canada would eat a couple lobsters every year, it's not how it works."
Tariffs could result in immediate financial loss
Frédérik Boisvert, president of Quebec City's chamber of commerce, says each company's situation will depend on the sector.
According to Boisvert, manufacturing companies in the Quebec City region export more than 70 per cent of their production to the United States.
That's the case for Vincent Giguère's company — P1 Automotive, which manufactures cleaning products for cars.
He says the tariffs would result in "immediate financial loss."
"When we deliver finished products to American retailers, for example, the delivery must be made with taxes and customs duties paid," said Giguère.
"So we're the ones who have to take that 25 per cent, so it's a blow to our immediate profit margins."
'We knew that the storm was coming,' says company head
With all the uncertainty, job security is top of mind for Louis Veilleux's employees.
The president and founder of Groupe Mundial, a group of manufacturing companies in Quebec and Ontario specializing in manufacturing sheet metal, says he's choosing not to panic.
"I think being ready and being calm and looking for opportunity is … really important," said Veilleux.
"We knew that the storm was coming. We could see the cloud."
While he says people in the U.S. will be "the ones suffering more," he's concerned about the effects of retaliatory tariffs.
Prime Minister Justin Trudeau vowed to hit back and the federal government released a list of $155 billion worth of American goods that will face 25 per cent tariffs if Trump doesn't back off.
"We['re] going to be hurting too, so it is a catch-22 situation. The outcome is not looking so good for a couple months," said Veilleux.
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With files from CBC's Quebec AM and Radio-Canada